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3 rd Quarter 2011 Conference Call

NYSE A MEX : SARA. 3 rd Quarter 2011 Conference Call. November 11 th , 2011. Safe Harbor Statement. Corporate Office Houston Office 7500 San Felipe, Suite 675 Houston, Texas 77063 Phone: 713-458-1560 Fax: 713-458-1561 Transfer Agent Securities Transfer Corporation Legal Counsel

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3 rd Quarter 2011 Conference Call

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  1. NYSE AMEX : SARA 3rd Quarter 2011 Conference Call November 11th, 2011

  2. Safe Harbor Statement Corporate Office Houston Office 7500 San Felipe, Suite 675 Houston, Texas 77063 Phone: 713-458-1560 Fax: 713-458-1561 Transfer Agent Securities Transfer Corporation Legal Counsel Slattery, Marino & Roberts Adams and Reese LLP Independent Auditors MaloneBailey LLP Website www.saratogaresources.com Stock Ticker NYSE Amex: SARA This presentation includes certain estimates and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to anticipated operating and financial performance, growth opportunities, growth rates, potential acquisition opportunities, and other statements of expectation. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “assumes,” “seeks,” “estimates,” “should,” and variations of these words and similar expressions, are intended to identify these forward-looking statements. While we believe these statements are accurate, forward-looking statements are inherently uncertain and we cannot assure you that these expectations will occur and our actual results may be significantly different. These statements by the Company and its management are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Important factors that could cause actual results to differ from those in the forward-looking statements include the factors described in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2010. The Company disclaims any obligation to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information, or otherwise. This presentation includes certain non-GAAP financial measures that are different from financial measures calculated in accordance with GAAP and may be different from similar measures used by other companies.

  3. Introduction • Thomas F. Cooke, Chairman/Chief Executive Officer • Andrew C. Clifford, President and Director • Michael O. Aldridge, Chief Financial Officer and EVP

  4. Company Snapshot Company Overview Geographical Overview • Saratoga’s assets are all located in transitional coastline and protected in-bay environment on parish/state leases. • Publicly-traded on the NYSE Amex. • Net Acreage: 31,125 acres, mostly HBP. • Water depth = 0-20 feet. • Reserve Summary (1) • Proved Reserves: 18.0 MM Boe (44% Oil). • PV10: $316 Million (SEC flat pricing). • PV10: $438 million (SPE strip pricing). • Probable Reserves: 10.5 MM Boe (40% Oil). • PV10: $188 Million (SEC flat pricing). • PV10: $241 million (SPE strip pricing). • Possible Reserves: 30.1 MM Boe (44% Oil). • PV10: $450 Million (SEC flat pricing). • PV10: $575 million (SPE strip pricing). • Current Production (2) • 3,592 Net Boepd. • 60% Oil. • R/P Ratio (3): >13 Years. Main Pass/Breton Sound Assets Little Bay/SAB GrandBay Vermilion 16 State Waters 3 Mile Limit Louisiana (1) Collarini 1/1/2011 reserves using $79.43 oil, $4.376 gas (SEC flat) and COB 12/31/10 NYMEX strip of $93.43 oil, $4.55 gas (escalating); (2) As of 11/3/2011; (3) Calculated as total proved reserves divide by current production.

  5. Re-Financing • Improved SARA’s Balance Sheet, reduced LT debt by $7.7 MM, extinguished $10.2 MM LCs. • Re-financing in July 2011: • $127.5 MM in Senior Secured Notes due 7/1/2016 • $7.4 MM Private Placement of Common Stock • $27.3 MM Private Placement of Common Stock • Warrants for 2 MM shares of Saratoga Stock at $0.01/Share cancelled due to early retirement of Saratoga’s prior debt • Shares Outstanding (9/30/2011) = 26.38 MM: • Float = 17.25 MM • Held by Insiders = 34.7% • Market Capitalization (9/30/2011) = $134.8 MM. Estimated NAV/Share between $7.14-13.70 NYSE Amex = SARA

  6. 2011 Production Daily Production High of 4,174 Net Boepd 10/24/2011 3Q 2011 Rate of 2,678 Boepd up 8% from 3Q 2010 >70% Increase in Production in 10 Months! Currently 60% Oil versus Gas

  7. Premium Crude Pricing Saratoga ranks highly versus peers with $47.80 EBITDAX/Boe & with >60% of production being oil. • Light Louisiana Sweet (LLS) pricing on 3 assets: • Grand Bay • Little Bay • Vermilion 16 • LLS quality adjustment ranges from $14.86/Bbl to >$23/Bbl premium to WTI since 3/2011. • Heavy Louisiana Sweet (HLS) pricing on 6 assets: • Breton Sound 31 • Breton Sound 32 • Breton Sound 51 • Grand Bay • Main Pass 25 • Main Pass 46 • HLS quality adjustment ranges from $14.05/Bbl to >$17.38/Bbl premium to WTI since 3/2011. LLS vs. WTI spread $28/Bbl to $14/Bbl thru 2013 http://www.cmegroup.com/trading/energy/crude-oil/lls-crude-oil-argus-vs-wti-calendar-spread-swap-futures_quotes_settlements_futures.html

  8. 3Q 2011 Highlights • EBITDAX: • $11.3 MM in 3Q 2011 versus $7.0 MM in 3Q 2010 • $33.8 MM in 1st 9 months 2011 versus $19.5 MM in 1st 9 months 2010 • Average Realized Hydrocarbon Prices: • $76.65/Boe in 3Q 2011 versus $57.59/BOE in 3Q 2010 • $78.24/Boe in 1st 9 months 2011 versus $59.63/BOE in 1st 9 months 2010 • Oil and Gas Revenues: • $18.9 MM in 3Q 2011 versus $13.2 MM in 3Q 2010 • $53.8 MM in 1st 9 months 2011 versus $38.3 MM in 1st 9 months 2010

  9. EBITDAX Margin Growth (1) Includes NPI revenue, excludes $261K gain on hedging Q1 2010.

  10. 3Q 2011 Highlights • Positive Net Income: • $6.2 MM or $0.24 per diluted share for 3Q11 versus net loss of $(3.5) MM or $(0.21) per diluted share for 3Q10 • $9.4 MM or $0.44 per diluted share for 1st 9 months of 2011 versus net loss of $(17.7) MM or $(1.05) per diluted share for the 1st 9 months of 2010 • Improved Cash Position: • $13.3 MM in Cash at 9/30/11, up from $4.4 MM at 12/31/10 • Increased Working Capital: • $4.4 MM of positive Working Capital at 9/30/11, up from $2.6 MM at 12/31/10 • Reduced Long Term Debt (1): • Down from $131.2 MM at 12/31/10 to $125.3 MM at 9/30/11 • Increased Shareholders’ Equity: • Up to $30.2 MM from a deficit of ($4.1) MM at 12/31/10, subsequent to SARA’s recapitalization in 7/2011 (1) Long term debt here excludes officers’ notes and is after debt discounts.

  11. Financial Summary Historical Financial Summary ($ in millions) (1) Adjusted EBITDAX as used herein represents EBITDA excluding unrealized derivative loss (income), exploration expense, plugging and abandonment provision (recovery), non-cash expenses, including reorganization expenses.

  12. Cash Flow Sensitivities (1) Based on 2011 production estimate from existing fields. e = estimate.

  13. 2011 Wellwork Summary • YTD Capital Expenditures = $24.1 MM. • 12 Projects Undertaken since 5/2011: • 2 Development Wells • 1 Exploration Well • 8 Recompletions • 1 Workover • Success Rate (1): • 2011 Success Rate = 75% • Historical 5 Year F&D Cost = 84% • YTD Capital Efficiency = 104% (2): • YTD Production Efficiency = 112% (3): • Forecasted Rate 1,991 Boepd Net • Test Rate 2,239 Boepd Net • Finding & Development Cost (4): • 2011 F&D Cost = $12.62/Boe • Historical F&D Cost since 2005 = $12.84/Boe (1) Calculated as successfully completed operations; (2) Calculated as actual capital divided by AFE capital; (3) Calculated as Post-job rate divided by Pre-job test rate; (3) Calculated as CAPEX spent divided by gross BOEs added and/or converted, not including workover expenses;

  14. Forward Drilling Plans • Wells drilled in 2011 to date: • Catina • Rio Grande • Roux • Well candidates for 2012: • Acadia PUD (V-16) • North Tiger PUD (BS-18) • Charlie PUD (BS-32) • Rocket (QQ 196 Offset) PUD (Grand Bay) • Winston (QQ 34 Offset) PUD (Grand Bay) • Buddy PUD (Grand Bay) • DP-10 PUD (Grand Bay) • Sequoia PUD (V-16) • Scooby PUD (MP-46) • Long John Silver (V-16) • Zeus (Grand Bay) • Planned 2012 Capital Expenditure between $45-55 MM, including drilling, recompletions and workovers.

  15. Strong Growth (1) Collarini SPE reserves; (2) Based on actuals plus 2011 production estimate from existing fields. A = actual, E = estimate.

  16. Solid Collateral Coverage Collateral Coverage $127.5 MM Total Debt PV10/Total Debt: 2.5x 3.4x 4.0x 5.3x 7.5x 9.8x Based on Collarini SEC or SPE 1/1/2011 reserve report.

  17. NAV Per Share Net Asset Value Per Share (NAV/Share) calculated as follows: 1P PV10 – Total Debt, divided by Total Number of Shares Outstanding at 9/30/11. Collarini 1/1/2011 SPE reserves with 5/18/2011 NYMEX strip including 3 year LSS then WTI. Saratoga 7/1/2011 reserves update with 6/30/2011 NYMEX strip. Collarini 1/1/2011 SPE reserves using COB 12/31/10 NYMEX strip of $93.43 oil, $4.55 gas (escalating). Collarini 1/1/2011 SEC reserves using $79.43 oil, $4.376 gas (flat).

  18. NYSE AMEX : SARA Q and A www.saratogaresources.com

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